Answer :
Answer:In accounting, every transaction has a two-fold effect as per the double-entry system. Here's how the transactions you listed affect the business:
1. **Mehul started a business with cash Rs.30,000.**
- **Increase in Assets (Cash)**
- **Increase in Owner's Equity (Capital)**
2. **Opened a bank account in Bank of Baroda with Rs.25,000.**
- **Decrease in Assets (Cash)**
- **Increase in Assets (Bank Balance)**
3. **Bought goods from Arvind Traders Rs.20,000.**
- **Increase in Assets (Inventory)**
- **Decrease in Assets (Cash) or Increase in Liabilities (Accounts Payable if not paid immediately)**
4. **Gave a cheque to Arvind Traders on account Rs. 10,000.**
- **Decrease in Assets (Bank Balance)**
- **Decrease in Liabilities (Accounts Payable)**
5. **Sold goods Rs.15,000.**
- **Increase in Assets (Cash/Bank Balance) or Increase in Assets (Accounts Receivable if sold on credit)**
- **Increase in Owner's Equity (Revenue)**
6. **Sold goods to Jinansh Rs.5,000.**
- **Increase in Assets (Accounts Receivable)**
- **Increase in Owner's Equity (Revenue)**
7. **Paid shop rent Rs.1,000.**
- **Decrease in Assets (Cash/Bank Balance)**
- **Decrease in Owner's Equity (Expense)**
8. **A crossed cheque of Rs.2,000 was received from Jinansh.**
- **Increase in Assets (Bank Balance)**
- **Decrease in Assets (Accounts Receivable)**
9. **Purchased stationery Rs.500.**
- **Decrease in Assets (Cash/Bank Balance)**
- **Decrease in Owner's Equity (Expense)**
10. **Received an order for supplying goods from Bharat Patel Rs. 10,000.**
- This is not an accounting transaction yet as no exchange has taken place.
Each transaction affects the accounting equation: Assets = Liabilities + Owner's Equity.
Explanation: